A leader in leveraged and inverse and thematic ETFs is launching new investment options for investors looking to place bets for or against two of the largest and most well-known companies in the world. Here are the details.
What Happened: Direxion is launching the first four of its single stock leveraged and inverse ETFs. The ETFs center on increased or inverse exposure to the daily performance of Apple Inc AAPL and Tesla Inc TSLA.
“Our new single stock leveraged and inverse ETFs allow active traders to seek profit or hedge risk with conviction,” said David Mazza, Direxion's managing director and head of product. “The ability to trade a Bull or Bear fund for Apple and Tesla is an excellent way for traders to respond tactically to potentially company events and market sentiment.”
The new ETFs are:
Direxion Daily AAPL Bull 1.5X Shares AAPU
Direxion Daily AAPL Bear 1X Shares AAPD
Direxion Daily TSLA Bull 1.5X Shares TSLL
Direxion Daily TSLA Bear 1X Shares TSLS
The new ETFs are considered higher on the risk scale and are meant for investors with an “in-depth understanding of the risks associated with seeking leveraged investment results.”
“Direxion is excited to help meet the robust market demand for single stock leveraged ETFs from investors seeking returns that are 150% long exposure or -100% of the returns of Apple or Tesla for a single day,” said Edward Egilinsky, Direxion's head of sales and distribution & alternatives. “This is the latest example of our firm’s continued commitment to launching advanced trading tools for the active community.”
Why It’s Important: Direxion was founded in 1997 and has around $20.7 billion in assets under management. The new ETFs increase the company’s coverage in the inverse and single stock sectors for investors.
The new ETFs from Direxion follow the recent launch by AXS Investments of several leveraged and inverse daily ETFs. AXS Investments launched eight single stock ETFs recently.
They include the AXS TSLA Bear Daily ETF TSLQ. The ETF generated many headlines and was a popular target of Tesla fans and investors, as the ETF has declined since launching.
AXS Investments also launched single stock ETFs related to NVIDIA Corp NVDA, PayPal Corp PYPL, Nike Inc NKE and Pfizer Inc PFE.
AXS did not release single stock ETFs for Apple and launched a bear ETF only for Tesla, with a bull daily ETF pending. The new Direxion ETFs offer minimal overlap in that regard and could see strong investor interest.
Along with being two of the most valuable companies in the world, Tesla and Apple are also two of the most popular stocks for investors and traders.
Tesla has average daily trading volume of 31.1 million shares over the last 100 days. Apple’s average trading volume is 86.4 million shares daily over the last 100 days.
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